Cohen & Steers Income Opportunities REIT (CNSREIT) announced the acquisition of Oracle Crossings, a 266,000-square-foot grocery-anchored open-air shopping center located in the Oro Valley submarket of Tucson, Arizona. The acquisition was completed through CNSREIT’s programmatic joint venture with Phillips Edison & Company, a publicly traded owner and operator of grocery-anchored shopping centers across the United States.
Oracle Crossings is currently 96% leased and is anchored by Sprouts Farmers Market and HomeGoods. The property occupies a prominent location at the intersection of Oracle Road and Magee Road, an area that experiences approximately 66,000 vehicles per day and attracts more than 2.1 million visitors annually.
The shopping center is situated within Oro Valley, adjacent to some of the Tucson area’s most affluent and fastest-growing suburbs. According to the company, the broader Tucson metropolitan area has recorded annual population growth of 1.2% and annual median household income growth of 3.7% during the past three years, both exceeding national averages. The region’s economy is supported by major institutions including the University of Arizona, Raytheon, Davis-Monthan Air Force Base, and Banner Health.
CNSREIT said it continues to focus on acquiring high-quality, necessity-driven retail properties that can provide attractive income opportunities alongside experienced operating partners. The company noted that open-air shopping centers currently have occupancy levels of 95.7%, the highest level recorded in the past 16 years, according to CoStar Group.
KEY QUOTE:
“Oracle Crossings is exactly the type of necessity-anchored, high-quality retail asset we seek to own in CNSREIT. Tenants demonstrate strong performance, and the property’s location in one of Tucson’s most affluent and supply-constrained submarkets provides a compelling foundation for durable income and long-term growth. Open-air shopping centers continue to benefit from limited new supply, strong tenant balance sheets, and resilient consumer demand, conditions that we believe position Oracle Crossings as a highly attractive addition to our portfolio.”
James S. Corl, Chief Executive Officer, Cohen & Steers Income Opportunities REIT, and Head of the Private Real Estate Group, Cohen & Steers
